Corrtech International files DRHP with SEBI for proposed IPO

Corrtech International, a company engaged in providing pipeline laying solutions to institutional and corporate customers, has filed its draft red herring prospectus (DRHP) with SEBI for its proposed IPO. The filing of the DRHP was done by Corrtech International towards the close of last week.

The IPO approval process by SEBI normally takes about 2-3 months so the final approval for the proposed IPO of Corrtech should come by May or June 2022.

The Corrtech International IPO comprises a fresh issuance of equity shares worth Rs.350 crore and an offer for sale of 40 lakh shares by the promoters. However, while the DRHP has indicated the approximate size of the fresh issue, the size of the OFS has been only indicated by the number of shares.

Hence the total size of the OFS and the total size of the overall issue will be known only once the price band for the IPO is finalized.

Let us talk about the offer for sale portion first. The offer for sale of 40 lakh shares will be done by the promoters of the company. This will reduce the stake of the promoters and increase the public stake in the company.

The offer for sale will not result in any fresh infusion of funds into the company. However, the offer for sale (OFS) is neither capital dilutive nor is it EPS dilutive.

The overall size of the fresh issue of shares will be Rs.350 crore for Corrtech International. The fresh issue will be capital dilutive and also EPS dilutive.

The proceeds of the fresh issue will be used for redemption of debentures, repayment of debt, capital expenditure for purchase of new equipment, capital infusion into subsidiary as well as for working capital and also for general corporate purposes.

Corrtech International has a history of nearly 40 years and is currently headed by the board of directors comprising of Pradyumna Tiwari, Sandeep Indrasen Mittal and Amit Indrasen Mittal.

The operations of Corrtech International is based out of Gujarat. It was started off as a private limited company and then converted into a public limited company after 2018.

Corrtech International is one of the leading providers of high-end pipeline laying solutions to Indian businesses. This also includes hydrocarbon (oil and gas sector) pipeline laying works in India.

Corrtech is also engaged in providing EPC (Engineering, Procurement and Construction) solutions. This is more focussed on process facilities for material and feed handling in oil and gas refineries and in large petrochemical complexes.

Also Read:-

Upcoming IPOs in March 2022

Upcoming IPOs in 2022